Spectre Presale & ICO Review

Spectre ICO Review

Spectre could become the first decentralised digital options and foreign exchange trading platform with the decentralised liquidity pool.

BASIC INFO

Name: Spectre
Symbol: SPEC-U (Utility token) / SPEC-D (Dividend token)
Hard Cap: $30,000,000
Presale Date: 27-Oct-2017 until 05-Nov-2017
Presale Price:
1 ETH = 2660 SPEC
Presale Bonus: 33% bonus over ICO price
ICO Date: 17-Nov-2017 until 10-Dec-2017
ICO Price:
1 ETH = 2000 SPEC
(you can choose the split between SPEC-U and SPEC-D tokens)

Whitelist: Open registration for Presale as of 17-Oct-2017.
Token distribution date: 24 days after the sale is over.

Social Interest (17-Oct-2017):
Twitter: 5,061
Telegram: 2,131
Reddit: 68
Bitcointalk: 15

IDEA

• Decentralised digital options and forex trading platform with planned additional functionality of Dapps (exotic trading, betting/gaming apps)

• They have a working prototype of their trading platform which looks very good and user-friendly. I highly recommend to check it out and do a paper trade to get the feeling of what the team is trying to achieve. It’s quite addictive.

• If the trader wins he gets 75-93% profit on his investment, if he is wrong he loses 100% of his investment. I can see the positive math in here for the SPECTRE.

• There are two type of tokens – Dividend-token (SPEC-D) and Utility-token (SPEC-U). The 2% fee based on volume goes to the SPECTRE and 2% goes to the SPEC-D token holders each month. Special dividends are also distributed each year to the SPEC-D token holders depending on the liquidity growth. Utility (SPEC-U) token holders get higher payouts when using the platform, wider range of assets to trade on and the participation in the token-buyback program with the 3% earnings from the fees.

• Decentralised liquidity pool serves as a counterpart for the trades and will be funded from the ICO contributions initially and from the platform profits later. This is a big thing! Unlike the Augur and Gnosis you don’t need to have hundreds of thousands of active users in order to get liquidity. This means that there is no conflict of interest between you and your broker like in traditional binary platforms, where your win is your broker’s loss, and vice-versa.

• Neither SPECTRE or any of its employees have access to the trader’s wallet (known onsite as the private escrow). Therefore, all withdrawals are instant, free of classic broker intervention tactics and paid out without any fees subtracted. As all transactions in SPECTRE are governed by Ethereum smart contracts resting on the public blockchain, no human intervention is possible.

MY THOUGHTS

• I think the idea is great, specially considering the embedded decentralised liquidity pool. The prototype is really good and addictive, and I can definitely see the use case there.

• If their platform takes off and their Balanced scenario works out it would make the investment in Spectre into a really good passive income opportunity. With 25 ETH invested in Dividend-tokens (1 ETH = 2,000 SPEC-D), after 5 years investor should be earning $48,000 per year (2% dividends + special dividends), after 7 years $115,000 per year, and after 11 years $267,000 per year. Of course, this is a big IF.

• They have a good and capable team. CEO, Kharan Kemani is a former Goldman Sachs Executive Director. The communication was good so far and CEO is personally answering questions in their Telegram channel. On a negative side, Kay is also quite defending in his communication. He gets easily irritated and he threatened of making a blacklist and banning Telegram users and potential investors who are expressing even a slight concern about the project. All this, while using inappropriate language for the CEO in their official Telegram group (“polite fuck you” in the context of saying no to certain investors). This is not a quality I want to see in the CEO, so this is a bit offsetting.

• Regarding the two tokens: Dividend-token gets 2% from the volume and Utility-tokens get 3% buyback from the fees. Dividend token will be considered a security and will not be listed on big exchanges until Spectre gets licence, which could take years (confirmed by CEO). One hybrid token would be superior. This was a trade-off and in a way a product cannibalisation, in order to get the funding from the big investors. In my discussion with the CEO, he agreed that one hybrid token would be better, but he also mentioned the pros for the two separate tokens which are (i) SOTP valuation (Sum of the Parts) which indicates that two split assets should be worth more than one combined, and (ii) potential for pairs trading in the future (price convergence between D- and U-tokens).

• Only 20% from the ICO funding is being allocated to the liquidity pool. User Acquisition gets 32%, Personnel 19%, Development 17% and Regulatory 12%. I was expecting more being allocated to the liquidity pool, but this might end up not being a problem if their model with average win/loss ratios works correctly. Also user acquisition is super important for the projects of this type, so I’m happy to see that 32% of collected funds will be used for that.

• There is a relatively long waiting period for the working product – “We will be releasing public beta with Testnet integration by December 2017 and the final product launch with Mainnet integration is scheduled for March 2018.”. This is the biggest concern I have about the project. Their prototype is great, but as of now it’s just a piece of regular software without any blockchain integration capabilities. I’m not sure how difficult will it be to integrate the software into Ethereum network and whether they will face any challenges along the way.

CONCLUSION

• I really like the idea and what they’ve done with the prototype so far. Investment in Spectre ICO is potentially not as good for flipping as it could be for long-term holding. Despite before mentioned concerns, I believe the team can pull it off and I plan on investing in this one.

• For flipping: NEUTRAL.

• For long-term holding: GOOD.

Additional resources:
• Prototype of the Spectre Trading Platform:
https://dapp.spectre.ai/dashboard.php
• Other reviews:
http://blockdiscover.com/icos/spectre-ico-review-analysis/
https://techburst.io/the-james-bond-of-icos-is-here-spectre-b6daa03a67c7

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